The Rehabilitation Trustee of the now-defunct crypto exchange Mt. Gox has recently confirmed that it has not sold its significant Bitcoin holdings, despite transferring over 140,000 BTC (approximately $10 billion) today. The trustee has emphasized that preparations to repay creditors are currently in progress. According to a statement released on May 28, the bankruptcy process will involve compensating creditors with fiat currency, Bitcoin, and Bitcoin Cash. While fiat currency payments have already commenced, digital asset payments to creditors have not yet been made.
Explanation from Former CEO
The former CEO of Mt. Gox, Mark Karpeles, has shed some light on the recent transactions, stating that they are part of the distribution process. Karpeles clarified that the trustee is transferring coins to a different wallet in preparation for the distribution that is expected to take place this year. He emphasized that there is no immediate plan to sell the bitcoins being held by the trustee, alleviating concerns within the crypto community.
Community Speculation and Market Reaction
Recently, multiple transactions from wallets associated with Mt. Gox caught the attention of the crypto community. According to reports from the blockchain analytics platform Arkham Intelligence, 72 Mt. Gox-linked wallets sent a total of 141,686 BTC in batches of approximately 2,000 BTC each to a new wallet. This new wallet, which received its first transaction on May 20, has since transferred almost 4,022 BTC to other wallets, totaling over $273 million. In addition, Mt. Gox-related addresses moved 142,846.22 BCH to an unmarked address, labeled 1LG4G, which currently holds 142,824.27 BCH, equivalent to around $67.9 million. This activity has sparked speculation within the community that Mt. Gox may soon begin repayments to creditors.
Alex Thorn, the Head of Research at Galaxy Digital, has suggested that these recent transfers could be the initial step towards distributing funds to creditors. However, the market has reacted nervously to these developments, with Bitcoin’s price dropping below $69,000 to $68,392 at the time of writing. This market reaction underscores the impact that movements from the Mt. Gox wallets can have on the overall crypto market.
The recent updates from the Mt. Gox Rehabilitation Trustee have provided some clarity on the distribution process and the status of the Bitcoin holdings. While preparations for repayments are underway, the crypto community remains vigilant and cautious as they anticipate further developments in the coming months.